BOSNIA AND HERZEGOVINA MINISTRY OF FINANCE AND TREASURY SECTOR FOR FINANCING EU ASSISTANCE...

BOSNIA AND HERZEGOVINA

MINISTRY OF FINANCE AND

TREASURY

SECTOR FOR FINANCING EU ASSISTANCE PROGRAMMES AND PROJECTS - FLCO

The project is co-funded by the European Union, Instrument for Pre-Accession Assistance

First Level Control Office BiHFLCO

Sarajevo, 17-18 December 2012



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Welcome



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10.00 – 10.30: Welcome/Registration/Introduction – training objective & approach

10.30 – 11.30: First Level Control (FLC): definition, objective, role of First Level Controllers and the procedures used, Reporting

11.30 – 11.45: Coffee break11.45 – 13.00: First Level Control (FLC): areas of

attention under the various budget lines 13.00 – 14.00: Lunch break14.00 – 15.30: First Level Control (FLC): areas of

attention under the various budget lines15.30 – 15.45: Coffee break15.45 – 16.15: First Level Control (FLC): areas of

attention under the various budget lines16.15 – 17.00: Q & A / evaluation of the training

Agenda



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To improve the quality of financial reporting by the Beneficiaries resulting

in an increased level of expenditure that can be validated by the CFCU as the

national First Level Control Office (FLCO)

Training objective



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FLC entails verifications carried out at the level of the Beneficiary Country covering

the administrative, financial, technical and physical aspects of projects thereby ensuring

that the expenditure declared is real, that products and services have been delivered and that the projects and expenditure comply with

the relevant Community and national legislation

First Level Control (FLC) - definition



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guarantee that expenditure reported and claimed by Beneficiaries is justified,

substantiated, real, actual, incurred and actually paid and in line with the provisions of the Subsidy Contract / Partnership Agreement

concerned and are in line with all legal provisions governing the Programme

First Level Control (FLC) - objective



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First Level Control – what is checked?

Requires a 100% desk-based administrative verification of documents complemented by on-the-spot checks on a sample basis

before the issuance of Declarations on the Validation of Expenditure (DVE)



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check the regularity and legality of expenditure incurred and declared by Beneficiaries from Bosnia and Herzegovina (BiH) by conducting desk-based administrative and on-the-spot checks

validate the expenditure incurred by Beneficiaries from Bosnia and Herzegovina (BiH)

validate the content of both the activities and the finances of the partner report

Role of First Level Controllers I



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draft a report and complete a checklist on the controls performed

sign and issue a Declaration on Validation of Expenditure (DVE)

keep complete files on the validation process in line with both programme as well as national requirements

Role of First Level Controllers II



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check of completeness

check of compliance with EU and national legislation, programme rules and

procedures and Subsidy Contract

check of plausibility

check of existence and reality

First Level Control – procedures used



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REPORTING BY BENEFICIARY TO FIRST LEVEL CONTROL OFFICE



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Progress Report

Presents the activities and costs of one Final Beneficiary for the given reporting period

The Progress Reports must be submited to the competent FLCO who will verify eligible costs



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Progress Report

Consists of two sections:

ACTIVITY REPORT: provides information on the achievement of the project’s activities, milestones and outputs

FINANCIAL REPORT: provides information on the project’s expenditure related to the activities per budget line and Work Package



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Activity Report

obligatory use of the template developed for the programme published on

http://www.adriaticipacbc.org/index.asp?page=interna&level=implementation_documents





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Activity Report

FORMAT & CONTENT :

Excel spreadsheet with 4 worksheets:

(i) Main data(ii) Summary of project activities and main issues(iii) Implemented activities per Work Package(iv) Declarations



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Activity Report

Section 1 – Main data:

Project identification details: code, acronym, title, priority, measure, name of FB,

Beneficiary No. in AF, start & end date of project, legal representative of FB, contact person of FB



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Section 2 – Summary of project activities and main issues

- Description of project activities implemented within the period covered by the report

- Explanation whether the implementation of the project is in line with the time frame as planned in the AF and if, explanation about the reasons and estimates of the anticipated delay

Activity Report



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Section 2 – Summary of project activities and main issues- Explanation whether financial progress is in line

with spending forecasts in the AF and if not, explanation and estimate of deviation

- Problems encountered during implementation, solutions found, minor changes to planned activities etc)

Activity Report



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Section 3 – Implemented activities per WP

Comparison between planned & realised activities during the period covered by the report

Description of results & outputs delivered Financial resources reported

Note: it is extremely important that information provided in the Activity Report corresponds to the information provided in the Financial Report and the List of Expenditure as otherwise FLC cannot validate the

reported costs

Activity Report



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Activity Report

Section 4 – Declarations

VAT Revenues Grants under the « de minimis » regime Equal opportunities Environmental issues



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Financial Report

Expenditures per budget lines and WP filled in directly into the MIS

Connection with the supporting invoices or other documents of equivalent probative value

Note:In case the invoice (payslip,receipt...) covers activities related to more than one WP,a List of expenditure must be provided.



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Template to be filled in providing details on costs reported with respect to:

WP the expense relates to budget line the expense is charged against invoice number and date specification of the invoice name of company that issued the invoice amount in KM exchange rate used (€ 1 = KM 1.95583) amount reported in €

List of Expenditure



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Template can be found on the following link:http://www.adriaticipacbc.org/index.asp?page=interna&level=implementation_documents

Note: it is of the utmost importance that First Level Controllers are able to identify the supporting document backing up each expense declared in the report without having to spend a lot of time trying to locate it in the entire package

List of Expenditure




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Expenditure needs to be reported in euro

BAM is pegged to € at rate of 1,95583

Rounding to two digits after the comma

Example:

BAM 1.768,93 equals € 904,439547 which is to be reported as € 904,44



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Contract award declaration

For all procurement contracts concluded a standard declaration needs to be filled in providing substantial details on the procurement procedure carried out

See template



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Contract award declaration

Serves the purpose to prove that the most economically advantageous offer has been selected in accordance with the principles of transparency and fair competition by taking care to avoid any conflict of interest



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Single tender procedure report

For any awarded contract not exceeded 10.000 EUR, but higher than 500 EUR

Beneficiaries has to fill in this document, upload in MIS when reporting and send the hard copy with the PR to the FLCO

See template



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1. FB sends by email properly filled in Activity Report to Lead Beneficiary who needs to sign and stamp it

2. Lead beneficiary returns the signed Activity Report to the FB also by email (scanned)

3. FB uploads electronic version of the Activity Report for the period concerned in the Management Information System (MIS)

4. If necessary, FB uploads Contract Award Declaration and Single tender procedure Report for the period concerned in the Management Information System (MIS)

5. FB prints Progress Report from the system (MIS), sign, stamp it and sends hard copy to the FLCO with all supporting documents.

Submission of the Progress Report by Beneficiary



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Attachments to the Progress Report

All documents proving the eligibility of costs as invoices, bank statements, public procurement documents, project deliverables,

List of expenditure Contract Award declaration, if necessary Single tender procedure Report, if necessary

Any other document FLC might require



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Final Beneficiaries can report their expenditures whenever they want

FB are anyway required to reach the level of expenditures foreseen in the Application form in 4 different periods per year:

by 31 January by 30 April by 30 June by 30 October

Timing for reporting



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ATTENTION!

Total amounts indicated in the Financial Report must be identical to the ones declared in the Activity Report otherwise the FLC could not validate the reported expenditures



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ATTENTION!

List of expenditure should be identical with the Financial Report, the expenditures must be ordered in the same way in the List of expenditure as they are ordered in the Financial Report ( MIS)

See the Instruction on how to submit documents to the FLCO



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1. STAFF COSTS2. TRAVEL AND ACCOMMODATION3. OVERHEADS4. MEETINGS AND EVENTS5. EXTERNAL EXPERTISE (+ publicity and visibility)6. PROMOTION COSTS7. EQUIPMENT8. INVESTMENTS9. FINANCIAL CHARGES AND GURANTEE COSTS

Budget lines



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The main purpose of the FLC checks with respect to this budget line is to establish whether sufficient information is available concerning the expenditure claimed for all staff working on the project

Covers the salaries (gross salary =netto salary + all legal provisions such as holiday entitlement, provision for sick leave, all charges paid both by employee and employer, regular bonus, work weekend with clarification, meal, transport cost, allowance for holiday and excluding voluntary contributions such as institutional pension schemes) of staff of the Beneficiary working either on a full-time or part-time basis on the project as indicated in the Application Form

STAFF COSTS



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Calculation of salary based on activities in WP

Be careful with MIS and report ( must be the same amount)

When calculating the salary on WP, check the amount in WP in budget (overbudget)

During project, the amount of salary of project staff can not be increased

STAFF COSTS



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Documents to be presented by FB / checked by FLCO with 1st report :

The FB will submitted with 1st report (to be updated during project lifetime) stating as a minimum: o list of project staff (name of the employee)o employment contract , decision on appointment or service order(qualification, task, start & end date)o job description, position in the projecto % of work on the project or indicative number

of hours/days involvemento gross salaryo indicative total costs to be funded under the project’s budget

STAFF COSTS



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Documents to be presented by FB / checked by FLCO:

Wherever applicable, the institutional book of rules (so-called « pravilnik o platama » and / or « odluka o utvrđivanju koeficijenata i načinu obračuna plata ») has to be submitted to the FLCO

Payslip & payroll Monthly timesheets Proof of payment Calculation method

STAFF COSTS



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Monthly timesheets proving the actual time worked on the project stating as a minimum: name of the employee, date, time, detailed description of activity related to the project«Need to be signed by both the employee and the employer and

date « Template of timesheet used (there are 2 different templates on

the programme website) Be careful with employee who works on more then one project

Note: Beneficiaries are not obliged to use these templates and can use their own format but the following information should be stated as a minimum:

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FB1

Total days per w eek

WP

Total days per w eek

0 3 3 0 3

2 3 5 0 5

1 4 5 0 5

1 3 4 1 5

1 4 5 0 5

5 17 22 1 23

Monthly timesheet for staff working hoursIDENTIFICATION OF THE PROJECT

Project acronym T.A.P.BIHProject Final Beneficiary Name (in original language)

Ministarstvo finansija i trezora BiH

Project Code TA/0004/002011 Priority/Measure

IDENTIFICATION OF THE PERSONNEL EMPLOYED Beneficiary no. in the AF

Project title TA FLCO BIHProject Final Beneficiary (in English language)

Ministry of Finance and treasury B&H

IDENTIFICATION OF THE PERSON SIGNATORY ON BEHALF OF THE ORGANIZATION

Extent of employment part time Function Assistant of Minister

Function Controller-FLCO Name/Surname Vera Letica

Name/Surname HANIFA RAMOVIĆ

Month/Year August / 2012

Project related activities Activities not related to this project Total working

days

Days off (holidays, sickness...

)

Total daysWeek

Activity (Please indicate a brief description of the project-related activity )

Activity (If related to another project, indicate the Programme/fund)

other activities

4 prepared activity report FLCOBiH other activities

1 other activities

2 desk baced check documentation other activities

Date: Date:

4.1. Techical assistance

5 check and calculation cost for TA FLCOBIHother activities

Signature: Signature:

3 staff brief ing



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Obligatory minimum information on timesheets:

project acronym, title & code name & function of the person to which timesheet refers to extent of employment on the project of person concerned name of the Beneficiary organisation (in local language and in

English) priority/measure name & function of the person approving the timesheet on

behalf of the Beneficiary organisation description of project activities carried out as well as activities

not related to the project extent to which the work is dedicated to the project

STAFF COSTS



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Obligatory :

The Calculation method must be the same as the evidence in timesheet, can not be different

If you choose hourly method of registration in timesheet, use the same method for calculation of monthly salary for reimbursement

STAFF COSTS



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Calculation method / formula used for calculating hourly rates / total staff costs

Monthly gross salary + obligatory charges / total working hours in the given month * hours worked on the project in the given month

STAFF COSTS



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EXAMPLE

Basis = gross salary of BAM 2,500 for April 2012 for an employee working part time on the project:

Salary paid for April 2012: BAM 2,500No of hours workable during April 2012: 176 (22*8)Hourly (days) rate: 2,500/176 (22)

= BAM 14.20 (113,64)No of hrs worked on project in April 2012: 48 hrs (27.27%)Total eligible cost: 48 * BAM 14.20

= BAM 681.60 or 6*BAM 113,64

=BAM 681,80Total to be reported (conversion into €): € 348,50

STAFF COSTS



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Proof of payment of both the salary and all compulsory charges whereby FLCO needs to be able to identify clearly to whom the salary was paid and what all the extras are that have been paid

Nalog plaćanja Nalog blagajne kod gotovinskih isplata Registar plaćanja i faktura (budžetski korisnici) Izvod banke Specifikacija uz platu ovjerena od strane Porezne uprave Izjava odgovorne osobe da se iznos plate isplaćuje kumulativno za

sve uposlene u organizaciji i da u taj iznos ulaze i plate zaposlenih na projektu

STAFF COSTS



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MAIN PROBLEMS ENCOUNTERED SO FAR:

Insufficient supporting documentation (e.g. no list of staff or employment contracts submitted)

Lack of proof of actual payment of salaries and other obligatory charges

Lack of information as to how the hourly rate was calculated

No adequate calculation of gross salary (calculation the part of obligatory charges)

Incorrect timesheets

STAFF COSTS



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TRAVEL & ACCOMMODATION

Covers expenditure related to the travel and accommodation costs of the employees of the Beneficiary (travel and accommodation costs of external experts participating in the project have to be charged against the budget line « External expertise » – see later)

Travel costs for driver are eligible if he is on list of staff . (Other people)

Travel related with project activities



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The First Level Controller checks whether expenses under this budget line are:

reasonable foreseen in the Application Form approved internally within the Beneficiary institution (authorisation of the mission) in line with the Beneficiary’s internal rules incurred in the eligible geographical areas

of the Programme




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SOME BASIC RULES

Assignment of costs Costs have to be borne by the Beneficiary and

therefore proof of direct payment by an employee is insufficient

Economy of transport cheapest way (to be demonstrated on the basis of an

assessment by the Beneficiary) normally public transport (travel by air, bus, train, boat) economic class is eligible, but business/first class

tickets always ineligible (even if allowed by the internal rules of the Beneficiary)




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SOME BASIC RULES

Reasonability of board & lodging costs

Hotel costs (invoice) and costs of meals should be « reasonably » priced and higher price ranges must be duly justified in each case

Note: this requires judgment by the First Level Controller who may ask additional clarifications




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Duration

Any travel should be reasonable and should normally start the day before the event (e.g.

meeting) until the day after




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SOME BASIC RULES

Reporting method Costs should be reported in line with national rules or specific internal regulations of the Beneficiary(«pravilnik o službenim putovanjima »)

Example: per diems should be in line with entity legislation Cost were reimbursement




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SOME BASIC RULES

Per diems / daily allowances

Can be eligible provided they are foreseen in national / institutional rules as the only way of

reimbursement of costs such as accommodation, meals, local transport etc




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Example

Start & end date and hours of travel Calculation of travel allowances ( in country or in

board, full or part 30%) Exchange rate (date reimbursement of travel order-

date reporting is for exchange KM in EUR) All costs (accommodation, autopark, bus/train/plane

tickets (boarding pass-obligatory)fuel??, highway tickets) Invitation, Decision for mission, List of participants,

agenda and minutes




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TRAVEL BY OWN / COMPANY CAR

Calculation sheet prepared according to national / institutional rules stating at least:(20% of price fuel) distance unit rate total cost fuel costIf necessary accompanied by additional proof documentsCan take a rent-a-car (invoice & way of selection)




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Insufficient supporting documentation (e.g. no travel order, or economic way or clarification no submitted)

Lack of proof of payment Lack of information as to how the calculation rate was No adequate costs (extra meals in restaurant, washing

car) Incorrect calculation of exchange rate One travel order for two persons Not submitted invitation letter, participants list




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BUDGET LINE – OVERHEADS



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Covers expenditure such as:

OFFICE COSTS:

electricity, heating, water, cleaning, office rent, office supplies

ADMINISTRATIVE COSTS:

telephone, fax, internet, mail/postal/courier services, bank charges for national financial transactions related to the normal bank account of the Beneficiary

OVERHEADS



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TWO CATEGORIES

(i) Direct general costs = overheads directly allocated to the project (charged to the project at actual cost, no lump sums or estimations)

(ii) Indirect general costs = overheads allocated proportionally to the project (charged on the basis of a calculation method)

OVERHEADS



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CALCULATION METHODS/BASIS FOR APPORTIONMENT

(i) No. of people working on the project / No. of people working in the organisation

(ii) No. of hours worked on the project / No. of hours worked in total in the organisation during the period reported on

(iii) Surface used by the personnel working on the project / surface of the organisation

OVERHEADS



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Example of a calculation method to charge the costs of electricity and heating on the basis of surface of office space used for the purposes of implementing the project whereby:

space used for project purposes = 100 m² total office space at the disposal of the Beneficiary (also for non-project related activities = 400 m²)

OVERHEADS



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Total cost of electricity & heating for the entire premises of the Beneficiary during the period

reported on equals to BAM 500

100/400*100=25%

25% (500)= 125 BAM

or 63,91 € (125/1,95583)

OVERHEADS



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Example of a calculation method to charge the costs of Internet on the basis of No. of people working on the project whereby:

3 full-time staff (100%) and one half-time staff (50%) are working on the project

overall staff of the Beneficiary (including those not working on the project) is the equivalent of 12 full-time staff members

OVERHEADS



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Total cost of Internet for the entire premises of the Beneficiary during the period reported on

equals to BAM 200

3,5/12*100=29,17%

29,17% (200)= 58,34 BAM

or 29,83 € (58,34/1,95583)

OVERHEADS



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Notes on calculation method used:

The choice of the method used to apportion overhead costs to the project must be

attached to the Progress Report

If surface is used then general spaces such as toilet, corridors, canteen(s) etc needs to be

excluded from total available space.

Method may become subject to verification during an on-the-spot check.

OVERHEADS



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Documents to be presented by GB / checked by FLCO:

The First Level Controller will verify whether there is a clear indication of the method of allocating overheads to the project by the Beneficiary with

the first report and if changes occur at a later stage, whether this change is justified and explained in the next report (normally the

calculation method can only be reviewed on a yearly basis)

OVERHEADS



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Documents to be presented by GB / checked by FLCO:Proof of payment

Note: for telephone costs an itemised bill should be presented indicating clearly which calls were related to the project providing as a minimum details on the person/organisation called and the reason for the call

OVERHEADS



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No calculation method attached to the report

Proof of actual payment of overheads missing

OVERHEADS



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MEETINGS AND EVENTS



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Covers costs related to the organisation of conferences, seminars, meetings, workshops

directly related to the project and traceable from the latest approved Application Form.

Examples include: venue renting, interpretation equipment, catering, translation of documents linked to specific events, printing of materials directly related to events, external speakers...

MEETINGS AND EVENTS



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For each event the Beneficiary must clearly demonstrate:

purpose & agenda location & duration No. and list of participants minutes of the event copy of materials produced

MEETINGS AND EVENTS



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Eligibility of costs for meetings and events is subject to the full respect of procurement rules (proving that the most cost-efficient option has been selected) and of visibility /

publicity rules

MEETINGS AND EVENTS



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EXTERNAL EXPERTISE



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EXTERNAL EXPERTISE

Covers costs paid for professional services of external experts or consultants exclusively engaged for the purposes of the project to perform certain activities outside the knowledge base of the Beneficiary such as financial management, legal advice, research, (specialised) translation, studies, surveys …



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PRIMARY CONDITIONS- work of the external expert is essential to the

project- external experts can only be engaged for services

which the Beneficiary cannot perform with already engaged resources

- fee rates are reasonable (in line with market rates prevailing in Bosnia and Herzegovina) and in relation to the consultant’s expertise and experience

- Project Partners cannot be contracted as external expert

- person charged under « Staff costs » cannot be contracted under « External expertise »

EXTERNAL EXPERTISE



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PUBLIC PROCUREMENT

The recruitment of external experts needs to fully respect the programme procurement

rules (PRAG, INTERACT, national)

EXTERNAL EXPERTISE



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PUBLIC PROCUREMENT – WEBSITES

PRAG: http://ec.europa.eu/europeaid/eprag/

INTERACT:http://www.interacteu.net/ipa_interact_publications/interact_ipacbc_documents/319/4867

NATIONAL:http://www.javnenabavke.ba/index.php?id=10zak&zak=1&jezik=en

EXTERNAL EXPERTISE

http://ec.europa.eu/europeaid/eprag/

http://www.interacteu.net/ipa_interact_publications/interact_ipacbc_documents/319/4867

http://www.interacteu.net/ipa_interact_publications/interact_ipacbc_documents/319/4867

http://www.javnenabavke.ba/index.php?id=10zak&zak=1&jezik=en

http://www.javnenabavke.ba/index.php?id=10zak&zak=1&jezik=en



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WHY PUBLIC PROCUREMENT PROCEDURES?

To prove that respect for the following underlying philosophies has been ensured:

fair & open competition impartiality transparency best value for money equal treatment non-discrimination nationality & origin

EXTERNAL EXPERTISE



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First Level Controllers will check whether there is sufficient written evidence that the evaluation of the offers and the award of

contracts was carried out in a professional, objective, fair and transparent manner

EXTERNAL EXPERTISE



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WHAT WILL FLCO CHECK REGARDING PROCUREMENT?

Existence of documents justifying the choice of the selected service provider such as:

Terms of ReferenceInformation about potential Tenderers approachedRequest for OfferOffers received

EXTERNAL EXPERTISE



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Existence of documents justifying the choice of the selected service provider such as:

Evidence on the evaluation of the offers received(members of the Evaluation Committee, selection & award criteria, evaluation report)Contract with the selected external expertOutputs by the external expert

EXTERNAL EXPERTISE



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First Level Controller will check whether:

Evidence of compliance to the procurement rules exists

External experts are not already employed as regular staff

Fee rates are conform to market prices and in line with the expert’s level of expertise, experience and competence

EXTERNAL EXPERTISE



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First Level Controller will check whether :

The contract with the external expert is available, reference is made to the project & programme, contains the name of the expert, contains a description of the services to be provided, the total price, deadlines for the delivery of outputs

EXTERNAL EXPERTISE



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Services provided by the external experts are directly related to the project,the related activities are explicity stated in the Application Form

The evidence of the work carried out by the service provider is available (studies,researches,analysis)

Proof of payment is available (bank statement) Proof of payment of taxes and contributions Reports on provided service/s or work/s Invoices for the provided services/works

EXTERNAL EXPERTISE



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Lack of compliance with procurement rulesDoubts about the necessity and justification to engage an external expert for a particular activityMissing contractLack of evidence of the work done by the external expertLack of proof of payment to the external expert

EXTERNAL EXPERTISE



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PUBLICITY AND

VISIBILITY



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PUBLICITY AND VISIBILITY

Beneficiaries are requested to consult the « Communication and Visibility Manual for EU

external actions » on the following link:

http://ec.europa.eu/europeaid/work/visibility/index_en.htm

http://ec.europa.eu/europeaid/work/visibility/index_en.htm



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PROJECT COMMUNICATION PLAN

At the start of the project the partnership will develop a communication plan specifying:

Aim & purpose of the communication & visibility activities

How and when results will be disseminated How responsibilities will be split between the

different partners Specification of financial resources




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LANGUAGE

English, being the language of the Programme, is suggested but national language may be

used as well to better tailor the information to the local target group(s)




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MAIN TOOLS THAT CAN BE USED

Project logo Project website Events (e.g. seminars, conferences, workshops) promotional materials (e.g. leaflets, brochures,

newsletters) Media(press, conferences, TV/radio/Internet

broadcasting, articles in international/national/regional/local press)




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OBLIGATORY USE OF EUROPEAN FLAG

The European Union flag can be downloaded at:http://europa.eu/about-eu/basic-information/symbols/flag/index_en.htm

To be accompanied by the statement:

« The project is co-funded by the European union, Instrument for Pre-Accession

Assistance. »


http://europa.eu/about-eu/basic-information/symbols/flag/index_en.htm



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OBLIGATORY USE OF PROGRAMME LOGO

The programme logo can be downloaded at:http://www.adriaticipacbc.org/index.asp?page=interna&level=implementation_documents

Two versions:

With the slogan of the Programme (« Let’s grow up together »)

Without the slogan of the Programme






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SPECIFIC REQUIREMENTS FOR INVESTMENT

During the works a billboard shall be put on site clearly visible to passers-by

Upon completion the billboard shall be replaced by a permanent plaque clearly visible to remain in place for at least 5 years following completion

of the works




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CONTENT OF BILLBOARDS / PLAQUES

European flag and Programme logo taking up at least 25% of the billboard / plaque

Project name Name of beneficiary Amount of Community contribution Start & end date of the project Following sentence: «The <name of the structure> has

been produced with the financial assistance of the IPA Adriatic Cross-Border Cooperation Programme.»




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SPECIFIC REQUIREMENTS FOR EQUIPMENT

Every single piece of equipment purchased under the project must be labelled with a

sticker on a visible and accessible spot for at least 5 years after the end of the project




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<Project Title (and/or Acronym) and code>

<if applicable the bookkeeping inventory number>

The project is co-funded by the European Union, Instrument for Pre-Accession

Assistance.




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Refers to all costs related to information and communication activities (e.g. press releases, newspaper advertisements, TV shows, brochures, newsletters, project website, display panels, banners, photographs, audio-video production etc…)

PROMOTION COSTS



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Eligibility of promotion costs is subject to the full respect of procurement rules

(proving that the most cost-efficient option has been selected) and of visibility / publicity

rules

PROMOTION COSTS



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EQUIPMENT

Refers to the purchase / rent / leasing of equipment necessary for the successful implementation of the project such as IT equipment (computer, printer, software,…), office furniture, machineries etc



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EQUIPMENT

SOME BASIC RULES

should not have been already financed by other subsidies (EU, national or regional)

should not have already been completely depreciated

should not be claimed in another category (e.g. overheads budget line)



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EQUIPMENT

have to respect the procurement and visibility / publicity rules

have to be clearly been foreseen in the Application Form and if not, must have been agreed by the Joint Technical Secretariat (JTS) /

Managing Authority (MA) and/or Joint Monitoring Committee (JMC) beforehand



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EQUIPMENT

second hand equipment is ineligible

equipment that is NOT used exclusively for project purposes can only be charged to the project on a pro-rata basis (this

counts also with respect to depreciation



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EQUIPMENT

CONCEPT OF ORIGIN

For goods purchased under the grant contract with a unit price > € 5,000 , the

Supplier needs to submit proof of origin at the latest when they present their invoice to

the Beneficiary.



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EQUIPMENT

CONCEPT OF ORIGIN

Goods (or service providers when these are companies rather than individuals) need to originate from an eligible country and these

are:



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EQUIPMENT

MEMBER STATES OF THE EUROPEAN UNION - EU (27)+

COUNTRIES OF THE INSTRUMENT FOR PRE-ACCESSION ASSISTANCE - IPA (7)

+COUNTRIES OF THE EUROPEAN NEIGHBOURHOOD

PARTNERSHIP INSTRUMENT - ENPI (17)+

MEMBER COUNTRIES OF THE EUROPEAN FREE TRADE AGREEMENT - EFTA (4)



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EQUIPMENT

Two options re. equipment used EXCLUSIVELY for project purposes:

(i) 100% full cost chargeable to the project(ii) depreciation method

Note: depreciation costs can never exceed the purchase price of the equipment



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EQUIPMENT

Purchase price is 100% eligible if:

equipment is low value and thus not depreciable (in BiH defined as less than

1,000 KM)

period between purchase date and end of project is longer than or equal to the

normal depreciation method for the piece of equipment



TREASURY



EQUIPMENTPurchase price is 100% eligible if (cont’d):

period between purchase date until end of project is shorter than the normal depreciation method but: - equipment is used for the same purpose for

at least 5 years after project completion - equipment is part of a specific goal of the project (e.g. office furniture of goal of project is to establish a bureau which will provide services for the target group also after project completion)

Note: in these cases the Beneficiary needs to submit a declaration



TREASURY



EQUIPMENTEXAMPLE CALCULATION OF ELIGIBLE COSTS OF

COMPUTER IN CASE OF DEPRECIATION

Purchase cost (a) KM 1,500

Depreciation period (b) 24 months

Monthly depreciation cost (c=a/b)

KM 62.50

No. of months reported in PR (d)

6

Total eligible cost (e=c*d)

KM 375.00 (to be reported as €

191.73)



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INVESTMENTS

Refers to small scale investments with a demonstrated transnational impact and can include costs related to construction works (either from scratch or adaptation of something existing i.e. renovation / reconstruction or expansion) or the purchase of land (up to a limit 10% of the total project budget)



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INVESTMENTS

SOME BASIC RULES

should not have been already financed by other subsidies (EU, national or regional)

have to respect the procurement and visibility / publicity rules

have to be clearly been foreseen in the Application Form and if not, must have been agreed by the Joint Technical Secretariat (JTS) / Managing Authority (MA) and / or Joint Monitoring Committee (JMC) beforehand



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INVESTMENTS

TWO OPTIONS:

(i) the construction will be used exclusively for project purposes and will remain in use for at least 5 years after project completion without any substantial modification

Full cost of the construction is eligible



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INVESTMENTS

(ii) the construction will be not be used exclusively for project purposes

Only share of the actual cost can be allocated pro-rata to the project and this share has to be calculated according to a fair, justified

and equitable method



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INVESTMENTS

PURCHASE OF LAND - 4 CONDITIONS: direct link between the land purchase and the

project’s objectives cost cannot exceed 10% of the total project budget certification from an independent qualified

assessor or authorised official body confirming that price does not exceed market value

copy of draft sales contract showing that the land is free of any burden (to be submitted before signing the IPA Subsidy Contract)



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Refers to costs related to:

charges for transnational financial transactions,

bank charges for opening and administering the accounts if a separate account for the project has been opened and

cost of bank guarantee(s) if required

FINANCIAL CHARGES AND GUARANTEE COSTS



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Charges related to a bank account NOT specifically opened for the purposes of the project (e.g. where the Beneficiary has decided to use an existing account) cannot be charged against this budget line but should be reported under the budget line « Overheads »




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Eligible bank charges:

periodical fees costs for cash dispenser management bank statement/communication despatch costs costs for closing the account




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Reporting: Documents proving that all costs are real,

directly related to the project and have not been declared under other budget line

Documents evidencing the opening of the bank account for the project

Proof of payment




TREASURY



Thank you!

BOSNIA AND HERZEGOVINA MINISTRY OF FINANCE AND TREASURY SECTOR FOR FINANCING EU ASSISTANCE...

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Transcript of BOSNIA AND HERZEGOVINA MINISTRY OF FINANCE AND TREASURY SECTOR FOR FINANCING EU ASSISTANCE...